Electricity prices: Barnier gives up on increasing taxes, by how much will the bill drop ?

Michel Barnier has backed down and announced that there will ultimately be no increase in electricity taxes. Here are the consequences for your bill.

He finally backed down! Michel Barnier has just announced that there would be no increase in taxes on electricity in 2025. A highly flammable project opposed by the left but also by the National Rally, which planned to increase state revenue at a time when the price of energy was going to fall. The bill was therefore still supposed to decrease. Under pressure, the head of government finally backtracked and acceded to the request of the opposition, mainly the RN. “I have decided not to increase taxes on electricity in the 2025 finance bill,” he has just announced to Le Figaro. For French people who are on the regulated sales tariff (EDF blue tariff), this means a 14% reduction in their bill. starting February.

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16:20 – Which lines on my bill will change in 2025 ?

Difficult to read, the electricity bill will therefore see a few lines change from February. If the subscription will remain at the same rate, the “consumption” line, and more particularly the “Price kWh HT” column, will decrease. The new amount is not yet known but it is certain that it will be down. The next line, “Contribution tarif acheminement”, will remain the same, while the “Contribution au service public de l'électricitééé", will increase. It will go from 0.021€/kWh to 0.032€/kWh. Overall, the bill will still decrease.

16:17 – A tax will still (slightly) increase

Following Michel Barnier's announcement, the Prime Minister's entourage clarified the details of the measure. The Ministry of the Economy indicated that the TICFE will return to its pre-tariff shield level. Currently at €0.021/kWh, it will therefore be raised to €0.032/kWh. This will not prevent the final bill from falling significantly. Initially, Michel Barnier was considering increasing it to 0.042€/kWh.

16:07 – How many French people are affected by this announcement ?

This announcement by Michel Barnier, which therefore targets the regulated tariff electricity sales, concerns 20 million households in France, or 59% of consumers (individuals and professionals combined) according to the Energy Regulatory Commission.

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15:57 – When will I see the reduction on my bill ?

The drop in the price of kWh of electricity will apply from February 1st. The new rate is not yet known but it will apply from the February bill, received at the end of the month or at the beginning of March. However, this may also depend on the billing frequency you have chosen.

15:50 – I have a fixed-price market offer contract: what will my bill look like? from February 1st ?

For holders of this type of contract, the price of the bill will not change, neither upwards nor downwards. Indeed, on these offers, the price of the kWh is fixed, being guaranteed for one or two years. It therefore does not vary according to the market. Households and businesses that have this contract will therefore not see any change on their bill.

15:42 – How do I know if I am affected by the announced drop ?

Between the market offers that will drop, the fixed prices, the different operators, etc., it is difficult to find your way around and, above all, to know if you are concerned. However, it is very easy to find the answer to this question. For an Engie customer, all you need to do is take your latest electricity bill. On the penultimate page, after the box "Payment by TIP S€PA", a section concerns "Your energy contract with Engie". There, it is indicated the name of your electricity contract with, in parentheses, what it refers to. The people who will benefit from the 14% price reduction are those who have the mention "market price" written next to it of the name of their contract.

15:30 – What types of contracts are affected by the drop in electricity prices ?

While there are many electricity offers, the one that will be affected by the biggest drop is that which concerns contracts at the regulated electricity sales rate. This particularly concerns EDF's “Blue Tariff”. In total, 20 million French people will benefit.

15:22 – How much will my electricity bill drop ?

According to the figures announced by the Prime Minister, the electricity bill should drop by 14% for the majority of French people starting in February 2025.

“I have decided “not to increase taxes on electricity in the 2025 finance bill,” Michel Barnier has just announced to Figaro. While the government wanted to increase taxes in 2025 to generate more revenue, the Prime Minister finally backed down in the face of the threat of censure brandished by the opposition. Good news for the French people's wallets.